<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                    FORM 10-Q

  X  Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
---- Act of 1934 for the quarterly period ended MARCH 31, 2000


     Transition report pursuant to Section 13 or 15(d) of the Securities
---- Exchange Act of 1934


                         COMMISSION FILE NUMBER 1-10981


                             SBS TECHNOLOGIES, INC.



              New Mexico                                 85-0359415
    (State or other jurisdiction of        (IRS Employer Identification Number)
    incorporation or organization)


                             2400 Louisiana Blvd. NE
                            AFC Building 5, Suite 600
                          Albuquerque, New Mexico 87110
                                 (505) 875-0600


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days.

                          YES  X         NO
                              ---           ---

            As of May 1, 2000, the Registrant had 6,559,461 shares of
                         its common stock outstanding.

<PAGE>


               SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS
                             (UNAUDITED)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                   March 31, 2000    June 30, 1999
                                                                   --------------    -------------
                               ASSETS
Current assets:
<S>                                                                <C>               <C>
     Cash and cash equivalents                                     $   7,855,564         3,500,556
     Receivables, net (note 2)                                        24,852,299        21,442,108
     Inventories (note 3)                                             24,143,719        15,755,379
     Deferred income taxes                                             2,687,501         2,179,143
     Income tax receivable                                             1,515,643            31,728
     Prepaid expenses                                                    850,455           632,798
     Other current assets                                                369,500           322,511
                                                                   -------------     -------------
          Total current assets                                        62,274,681        43,864,223
                                                                   -------------     -------------

Property and equipment, net                                            7,267,897         7,321,717

Intangible assets, net                                                31,476,454        36,228,105

Deferred income taxes                                                  4,921,514         4,488,059

Other assets                                                             100,662           105,751
                                                                   -------------     -------------

          Total assets                                             $ 106,041,208        92,007,855
                                                                   =============     =============

                     LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Notes payable                                                 $        --           3,900,000
     Notes payable to related parties                                       --           1,391,216
     Accounts payable                                                  4,967,386         3,319,664
     Accrued representative commissions                                  561,629           529,765
     Accrued salaries                                                  1,589,629         2,632,993
     Accrued compensated absences                                      1,149,223         1,201,653
     Other current liabilities                                         1,898,880         1,804,591
                                                                   -------------     -------------
          Total current liabilities                                   10,166,747        14,779,882
                                                                   -------------     -------------

          Total liabilities                                           10,166,747        14,779,882
                                                                   -------------     -------------

Stockholders' equity:
     Common stock, no par value; 100,000,000 shares authorized,
        6,500,753 issued and outstanding at March 31, 2000
        5,837,483 issued and outstanding at June 30, 1999             60,724,478        50,554,450
     Common stock warrants                                                  --              38,425
     Accumulated other comprehensive loss                             (3,762,906)       (2,059,126)
     Retained earnings                                                38,912,889        28,694,224
                                                                   -------------     -------------
          Total stockholders' equity                                  95,874,461        77,227,973
                                                                   -------------     -------------

          Total liabilities and stockholders' equity               $ 106,041,208        92,007,855
                                                                   =============     =============
</TABLE>

      See accompanying notes to condensed consolidated financial statements

                                     Page 2

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                      Nine Months Ended March 31      Three Months Ended March 31
                                                    -----------------------------    -----------------------------
                                                        2000             1999            2000             1999
                                                    ------------     ------------    ------------     ------------
<S>                                                 <C>                <C>             <C>              <C>
Sales                                               $ 90,341,358       78,325,058      29,888,637       26,830,138

Cost of sales                                         42,064,813       32,629,023      14,314,636       11,452,451
                                                    ------------     ------------    ------------     ------------
         Gross Profit                                 48,276,545       45,696,035      15,574,001       15,377,687

Selling, general and administrative expense           18,713,659       17,785,933       6,451,485        5,972,504

Research and development expense                      11,241,327       10,642,029       3,703,181        3,786,455

Acquired in-process research and
     development charge                                     --            527,514            --               --

Amortization of intangible assets                      3,307,502        2,849,247       1,085,746        1,147,009
                                                    ------------     ------------    ------------     ------------
         Operating income                             15,014,057       13,891,312       4,333,589        4,471,719
                                                    ------------     ------------    ------------     ------------

Interest income(expense), net                            272,485           91,363          97,698          (62,453)

Foreign exchange gains (losses)                          (92,359)         611,560         (62,377)         554,294
                                                    ------------     ------------    ------------     ------------
                                                         180,126          702,923          35,321          491,841
                                                    ------------     ------------    ------------     ------------

Income before income taxes and minority interest      15,194,183       14,594,235       4,368,910        4,963,560

Income taxes                                           5,180,170        5,395,189       1,429,877        1,735,323
                                                    ------------     ------------    ------------     ------------

Income before minority interest                       10,014,013        9,199,046       2,939,033        3,228,237

Minority interest                                           --            444,383            --               --
                                                    ------------     ------------    ------------     ------------

Net income                                          $ 10,014,013        8,754,663       2,939,033        3,228,237
                                                    ============     ============    ============     ============


Net income per common share                         $       1.64             1.50            0.46             0.55
                                                    ------------     ------------    ------------     ------------

Net income per common share -
     assuming dilution                              $       1.49             1.42            0.41             0.52
                                                    ------------     ------------    ------------     ------------
</TABLE>

      See accompanying notes to condensed consolidated financial statements

                                     Page 3

<PAGE>


                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
            CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                                   (UNAUDITED)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

                                                  Common                                        Accumulated       Total
                                                  stock               Common                       Other          stock-
                                        -------------------------     stock       Retained     Comprehensive    holders'
                                           Shares        Amount      warrants     earnings         Loss          equity
                                        ------------  ------------  ----------  ------------   ------------   ------------
<S>                                        <C>        <C>           <C>         <C>            <C>            <C>
BALANCE AT JUNE 30, 1999                   5,837,483  $ 50,554,450  $   38,425  $ 28,694,224   $ (2,059,126)  $ 77,227,973
Exercise of stock options and warrants       488,407     7,304,819     (38,425)         --             --        7,266,394
Stock-based compensation                        --          21,093        --            --             --           21,093
Acquisition of SciTech, Inc.                 174,863           100        --         642,692           --          642,792
Dividends paid to former shareholders
      of SciTech, Inc.                          --            --          --        (438,040)          --         (438,040)
Income tax benefit from stock
      options exercised                         --       2,844,016        --            --             --        2,844,016
Net income                                      --            --          --      10,014,013           --       10,014,013
Other comprehensive income:
      Foreign currency translation
         adjustment                             --            --          --            --       (1,703,780)    (1,703,780)
                                        ------------  ------------  ----------  ------------   ------------   ------------
BALANCE AT MARCH 31, 2000                  6,500,753  $ 60,724,478  $     --    $ 38,912,889   $ (3,762,906)  $ 95,874,461
                                        ============  ============  ==========  ============   ============   ============
</TABLE>

      See accompanying notes to condensed consolidated financial statements

                                     Page 4

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                 Nine Months Ended March 31,
                                                                                 ---------------------------
                                                                                     2000           1999
                                                                                 ------------   ------------
<S>                                                                              <C>               <C>
Cash flows from operating activities:

     Net income                                                                  $ 10,014,013      8,754,663
                                                                                 ------------   ------------

     Adjustments to reconcile net income to net cash provided by operating
         activities:
             Depreciation                                                           1,440,347      1,209,672
             Amortization of intangible assets                                      3,307,502      2,849,247
             Bad debt expense                                                          36,557        186,173
             Deferred income taxes                                                 (1,007,063)      (486,427)
             Loss on disposition of assets                                             75,375         32,142
             Foreign exchange (gains) losses                                           92,359       (611,560)
             Stock-based compensation                                                  21,093           --
             Acquired in-process research and development charge                         --          527,514
             Minority interest                                                           --          444,383
             Changes in assets and liabilities, net of effects of acquisitions:
                 Receivables                                                       (3,497,734)    (1,800,679)
                 Inventories                                                       (8,138,458)    (2,356,594)
                 Prepaids and other assets                                           (284,044)      (281,017)
                 Accounts payable                                                   1,658,157       (369,546)
                 Accrued representative commissions                                    31,864        195,024
                 Accrued salaries                                                  (1,034,375)    (1,333,345)
                 Accrued compensated absences                                         (40,641)       135,782
                 Income taxes                                                      (1,469,649)    (2,177,879)
                 Other current liabilities                                            254,371         90,911
                                                                                 ------------   ------------
                     Net adjustments                                               (8,554,339)    (3,746,199)
                                                                                 ------------   ------------

                     Net cash provided by operating activities                      1,459,674      5,008,464
                                                                                 ------------   ------------

Cash flows from investing activities:
     Cash received from sale of assets                                                   --              201
     Business acquisitions (note 5)                                                    64,162    (25,142,486)
     Acquisition of property and equipment                                         (1,478,279)    (3,218,535)
                                                                                 ------------   ------------

                     Net cash used by investing activities                         (1,414,117)   (28,360,820)
                                                                                 ------------   ------------

Cash flows from financing activities:
     Payments on long-term borrowings and capital leases                                 --       (3,000,000)
     Payments on notes payable to related parties                                  (1,391,216)    (1,607,467)
     Proceeds on notes payable to bank                                                   --        6,500,000
     Payments on notes payable                                                     (3,975,060)          --
     Dividends paid to former shareholders of SciTech, Inc.                          (438,040)          --
     Proceeds from exercise of stock options and warrants                           7,266,394      1,111,899
     Repurchase of common stock, net                                                     --         (181,928)
     Income tax benefit of stock options exercised                                  2,844,016        542,500
                                                                                 ------------   ------------

                     Net cash provided by financing activities                      4,306,094      3,365,004
                                                                                 ------------   ------------
</TABLE>

      See accompanying notes to condensed consolidated financial statements

                                   (Continued)

                                     Page 5

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (CONTINUED)

--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                             Nine Months Ended March 31,
                                                                             ---------------------------
                                                                                 2000          1999
                                                                              -----------   -----------
<S>                                                                           <C>             <C>
Effect of exchange rate changes on cash                                             3,357        65,002
                                                                              -----------   -----------

Net change in cash and cash equivalents                                         4,355,008   (19,922,350)

Cash and cash equivalents at beginning of period                                3,500,556    22,874,754
                                                                              -----------   -----------

Cash and cash equivalents at end of period                                    $ 7,855,564     2,952,404
                                                                              ===========   ===========


Supplemental disclosure of cash flow information:
     Interest paid                                                            $    88,029        78,978
     Income taxes paid                                                          4,886,828     7,428,969

     Noncash financing and investing activities:

     Stock issued for acquisition                                                    --         713,878

     Summary of assets acquired and liabilities assumed through acquisition:

             Cash and cash equivalents                                        $    64,162       531,475
             Receivables                                                          382,065     5,314,703
             Inventories                                                          480,191     3,378,652
             Deferred income taxes                                                   --        (105,638)
             Prepaid expenses and other current assets                               --         102,512
             Goodwill                                                                --      23,909,563
             Covenant not to compete                                                 --         200,000
             Property and equipment                                                80,500       556,258
             Accumulated depreciation                                             (66,481)         --
             Note payable - related party                                            --      (2,865,603)
             Note payable                                                         (75,060)         --
             Accounts payable                                                    (201,061)     (851,903)
             Accrued salaries                                                     (21,524)   (1,753,948)
             Accrued compensated absences                                            --         (82,225)
             Income taxes                                                            --      (1,888,522)
             Other current liabilities                                               --        (771,363)
             Common stock                                                            (100)         --
             Retained earnings                                                   (642,692)         --
                                                                              ===========   ===========
</TABLE>

      See accompanying notes to condensed consolidated financial statements

                                     Page 6

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2000
                                   (Unaudited)


1)   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     The accounting policies as set forth in SBS Technologies, Inc.'s (the
     "Company") Annual Report on Form 10-K dated September 23, 1999 have been
     adhered to in preparing the accompanying interim consolidated financial
     statements. These statements are unaudited but include all adjustments,
     consisting of normal recurring adjustments, that the Company considers
     necessary for a fair presentation of the financial position, results of
     operations, and cash flows for such interim periods. Results for such
     interim periods are not necessarily indicative of results for a full year.


2)   RECEIVABLES, NET

     Receivables, net consist of the following:

<TABLE>
<CAPTION>
                                                                       March 31, 2000          June 30, 1999
                                                                       --------------          -------------
                  <S>                                                    <C>                      <C>
                  Accounts receivable                                    $ 25,552,350             22,205,155
                          Less: allowance for doubtful accounts              (700,051)              (763,047)
                                                                         ------------           ------------
                                                                         $ 24,852,299             21,442,108
                                                                         ============           ============
</TABLE>


3)   INVENTORIES

     Inventories consist of the following:

<TABLE>
<CAPTION>
                                                                       March 31, 2000            June 30, 1999
                                                                       --------------            -------------
                  <S>                                                  <C>                         <C>
                  Raw materials                                        $   15,631,018              7,598,642
                  Work in process                                           4,131,832              4,150,779
                  Finished goods                                            4,380,869              4,005,958
                                                                        -------------          -------------

                                                                       $   24,143,719             15,755,379
                                                                         ============           ============
</TABLE>

4)   EARNINGS PER SHARE

     Net income per common share is based on weighted average shares
     outstanding. Net income per common share - assuming dilution includes the
     dilutive effects of potential common shares outstanding during the period.

          A reconciliation of the numerator and denominator of the per share and
          per share - assuming dilution calculation follows:

<TABLE>
<CAPTION>
                                                                       Nine Months Ended March 31
                                               ----------------------------------------------------------------------------
                                                                  2000                                  1999
                                               ----------------------------------------------------------------------------
                                                   Income         Shares     Per-Share   Income         Shares    Per-Share
                                                 (Numerator)   (Denominator)  Amount   (Numerator)   (Denominator) Amount
                                                 --------------------------------------------------------------------------
       <S>                                       <C>              <C>          <C>     <C>             <C>          <C>
       NET INCOME PER COMMON SHARE
       Net Income                                $10,014,013      6,120,828    $1.64   $8,754,663      5,824,087    $1.50
                                                                               =====                                =====
       EFFECT OF DILUTIVE SECURITIES
       Dilutive options and warrants                   --           584,345                  --          344,663
                                                 -----------     ----------            ----------    -----------
       NET INCOME PER COMMON SHARE
       - ASSUMING DILUTION
       Net Income                                $10,014,013      6,705,173    $1.49   $8,754,663      6,168,750    $1.42
                                                                               =====                                =====
</TABLE>


                                     Page 7

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           MARCH 31, 2000 (Continued)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                       Three Months Ended March 31
                                               ----------------------------------------------------------------------------
                                                                  2000                                  1999
                                               ----------------------------------------------------------------------------
                                                   Income         Shares     Per-Share   Income         Shares    Per-Share
                                                 (Numerator)   (Denominator)  Amount   (Numerator)   (Denominator) Amount
                                                 --------------------------------------------------------------------------
       <S>                                       <C>              <C>          <C>     <C>             <C>          <C>
       NET INCOME PER COMMON SHARE
       Net Income                                $2,939,033       6,386,905    $0.46   $3,228,237      5,828,783    $0.55
                                                                               =====                                =====
       EFFECT OF DILUTIVE SECURITIES
       Dilutive options and warrants                  --            696,795                 --           334,882
                                                 ----------    ------------            ----------    -----------
       NET INCOME PER COMMON SHARE
       - ASSUMING DILUTION
       Net Income                                $2,939,033       7,083,700    $0.41   $3,228,237      6,163,665    $0.52
                                                                               =====                                =====
</TABLE>

     For the nine and three months ended March 31, 2000 and 1999, options to
     purchase 175,432 and 922,771 shares and 4,396 and 429,400 shares of common
     stock, respectively, were outstanding but were not included in the
     computation of net income per common share - assuming dilution because the
     options' exercise price was greater than the average market price of the
     common shares.

5)   BUSINESS ACQUISITION

     On December 20, 1999, the Company acquired SciTech, Inc., a Madison,
     Wisconsin based designer and manufacturer of communications network I/O
     products based on PMC and PCI form factors. The acquisition qualified as a
     pooling of interests for accounting purposes and constituted a tax free
     reorganization for federal income tax purposes. Under the terms of the
     agreement, SciTech Inc.'s shareholders exchanged all outstanding shares of
     SciTech, Inc. stock for 174,863 shares of the Company's stock. SciTech,
     Inc. was subsequently merged into SBS Technologies, Inc., Communications
     Products ("Communications Products") (formerly SBS Technologies, Inc.,
     Embedded PPC Products).

     SciTech, Inc.'s historical results do not have a material effect on
     combined financial position or results of operations, and as such, the
     financial position and results of operations of the Company and SciTech,
     Inc. are combined from October 1, 1999.

6)   COMPREHENSIVE INCOME

     Comprehensive income for the nine and three months ended March 31, 2000 was
     $8.3 million and $2.1 million, respectively. Comprehensive income for the
     nine and three months ended March 31, 1999 was $7.8 million and $1.9
     million, respectively. The difference between comprehensive income and net
     income was related to foreign currency translation adjustments.

7)   SEGMENT FINANCIAL DATA

     The Company operates internationally through three operating segments: the
     Communications Group, the Computer Group, and the Aerospace Group. The
     Communications Group was established this quarter and includes
     Communications Products and SBS Technologies, Inc. Industrial Computers
     which were included in the Computer Group prior to this time. OR Industrial
     Computers GmbH ("OR") and ORTEC Electronic Assembly GmbH ("ORTEC"), which
     were reported as the European Group previously, have been merged into the
     Computer Group, as their business is closely related to the processor and
     I/O product businesses and is now under the same management. These segments
     are based on the markets that are served, the products that are provided to
     those markets, and have managers who report directly to the chief operating
     decision-maker. Reportable segments for all periods have been reclassified
     to conform to the new segment reporting structure.

     The Company measures its segments' results of operations based on income
     before income taxes and minority interest and prior to allocation of
     corporate overhead expenses, substantially all amortization of goodwill and
     intangibles, corporate interest income and expense, and acquired in-process
     research and development charges associated with purchase business
     combinations. The accounting policies used to measure segment results of
     operations are the same as those referred to in Note 1.

                                     Page 8

<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           MARCH 31, 2000 (Continued)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                             Corporate
                                               Communications     Computer      Aerospace     and un-
                                                   Group           Group         Group       Allocated(1)   Other(2)      Total
                                       --------------------------------------------------------------------------------------------
<S>                                     <C>    <C>              <C>            <C>                                      <C>
    NINE MONTHS ENDED MARCH 31

Gross Sales                             2000   $ 28,428,142     42,098,183     20,497,096           --         --       91,023,421
Intersegment sales                                 (219,405)      (185,397)      (277,261)          --         --         (682,063)
                                                 ----------     ----------     ----------     ----------   ----------  -----------
    Sales to external customers                  28,208,737     41,912,786     20,219,835           --         --       90,341,358

Gross Sales                             1999     13,099,090     41,123,412     24,558,618           --         --       78,781,120
Intersegment sales                                 (212,692)      (131,318)      (112,052)          --         --         (456,062)
                                                 ----------     ----------     ----------     ----------   ----------  -----------
    Sales to external customers                  12,886,398     40,992,094     24,446,566           --         --       78,325,058

Segment profit (Income
before                                  2000      7,298,997      8,536,722      5,507,428     (6,148,964)      --       15,194,183
    taxes and minority
    interest)                           1999      2,482,261      9,416,595      8,494,676     (5,271,783)  (527,514)    14,594,235

  THREE MONTHS ENDED MARCH 31


Gross Sales                             2000     11,454,247     13,259,369      5,474,177           --         --       30,187,793
Intersegment sales                                  (98,113)       (92,929)      (108,114)          --         --         (299,156)
                                                 ----------     ----------     ----------     ----------   ----------  -----------
    Sales to external customers                  11,356,134     13,166,440      5,366,063           --         --       29,888,637

Gross Sales                             1999      5,154,202     13,969,208      7,868,273           --         --       26,991,683
Intersegment sales                                  (78,910)       (44,333)       (38,302)          --         --         (161,545)
                                                 ----------     ----------     ----------     ----------   ----------  -----------
    Sales to external customers                   5,075,292     13,924,875      7,829,971           --         --       26,830,138

Segment profit (Income
before                                  2000      3,352,537      2,046,548      1,124,126     (2,154,301)      --        4,368,910
    taxes and minority
    interest)                           1999      1,104,194      3,193,135      2,368,816     (1,702,585)      --        4,963,560

      MARCH 31

Total assets                            2000     22,496,484     22,518,859     10,759,750     50,266,115       --      106,041,208

                                        1999      8,060,238     22,884,101     11,339,970     49,037,545       --       91,321,854
                                                 ----------     ----------     ----------     ----------   ----------  -----------
</TABLE>


(1)  Corporate and unallocated includes corporate overhead, substantially all
     interest expense, interest income, and amortization expense associated with
     goodwill and intangibles not considered in assessing segment profit.
     Corporate assets primarily include cash and cash equivalents, deferred and
     current income tax assets and intangible assets.

(2)  Acquired in-process research and development associated with purchase
     business combinations that management does not consider in assessing
     segment profits.



8)   SUBSEQUENT EVENT

     On April 12, 2000, the Company completed the acquisition of SDL
     Communications, Inc. ("SDL") for $25.0 million in cash, subject to
     adjustment upon finalizing the closing balance sheet. The acquisition was
     funded with existing cash and a $20.0 million borrowing under the Company's
     Credit Agreement with Bank of America, N.A. Acquisition costs are estimated
     to be $2.0 million. SDL is a privately held company located in Easton,
     Massachusetts that specializes in the design, manufacture and sale of WAN
     I/O for the telecommunications and data communications markets. SDL
     designs, manufactures, and markets T1/EI, T3/E3, HSSI and OC3 products
     based on the PCI, CompactPCI, and PMC form factors, and supporting
     protocols such as Frame Relay, HDLC, PPP, X.25 and ATM. In addition, SDL's
     products support the operating systems most commonly used in
     communications, including Windows NT, Solaris, and VxWorks. The acquisition
     will be accounted for under the purchase method, whereby the purchase price
     will be allocated to the underlying assets and liabilities based upon their
     estimated fair values. In connection with the acquisition, the Company
     expects to record an approximate $4.0 million acquired in-process research
     and development charge. The remaining goodwill will be amortized over an
     approximate eight year period. For the year ended December 31, 1999, SDL
     had sales of $12.3 million and a loss before income taxes of $3.0 million
     (unaudited). The loss before income taxes includes a stock-based
     compensation charge as required by APB 25 of $4.5 million.

                                     Page 9
<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 2000

THE FOLLOWING DISCUSSION AND ANALYSIS SHOULD BE READ IN CONJUNCTION WITH THE
COMPANY'S FINANCIAL STATEMENTS AND NOTES THERETO. INFORMATION DISCUSSED HEREIN,
OTHER THAN STATEMENTS OF HISTORICAL FACT, THAT ADDRESSES ACTIVITIES, EVENTS OR
DEVELOPMENTS THAT THE COMPANY OR MANAGEMENT INTENDS, EXPECTS, PROJECTS, BELIEVES
OR ANTICIPATES WILL OR MAY OCCUR IN THE FUTURE ARE FORWARD-LOOKING STATEMENTS.
THESE STATEMENTS ARE BASED UPON CERTAIN ASSUMPTIONS AND ASSESSMENTS MADE BY
MANAGEMENT OF THE COMPANY IN LIGHT OF ITS EXPERIENCE AND ITS PERCEPTION OF
HISTORICAL TRENDS, CURRENT CONDITIONS, EXPECTED FUTURE DEVELOPMENTS AND OTHER
FACTORS IT BELIEVES TO BE APPROPRIATE. THE FORWARD-LOOKING STATEMENTS INCLUDED
IN THIS FORM 10-Q ARE ALSO SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES,
INCLUDING BUT NOT LIMITED TO ECONOMIC, COMPETITIVE, GOVERNMENTAL AND
TECHNOLOGICAL FACTORS AFFECTING THE COMPANY'S OPERATIONS, MARKETS, PRODUCTS,
SERVICES, PRICES, AND OTHER RISK FACTORS LISTED IN THE COMPANY'S FORM 10-K FOR
THE YEAR ENDED JUNE 30, 1999. THESE FORWARD-LOOKING STATEMENTS ARE NOT
GUARANTEES OF FUTURE PERFORMANCE AND ACTUAL RESULTS; DEVELOPMENTS AND BUSINESS
DECISIONS MAY DIFFER FROM THOSE EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING
STATEMENTS.

RESULTS OF OPERATIONS

NINE MONTHS ENDED MARCH 31, 2000 COMPARED TO NINE MONTHS ENDED MARCH 31, 1999

SALES. For the nine-month period ended March 31, 2000, sales increased 15.3%,
or $12.0 million, from $78.3 million for the nine-month period ended March
31, 1999, to $90.3 million. Of this 15.3% increase, sales contributed by the
acquisition of SciTech, Inc. comprised 2.1%, and 13.2% was attributable to
the Company's other product lines. Unit shipments increased within the
Computer Group segment, primarily due to an increase in sales of the Group's
computer processor products and general purpose I/O products, partially
offset by pricing pressure, the negative impact of changes in exchange rates
on sales, and a decrease in sales of the Group's computer connectivity and
expansion unit products. Unit shipments increased among all product lines
within the Communications Group, but the increase in unit shipments was also
partially offset by pricing pressure. Unit shipments declined within the
Aerospace Group compared to the nine-month period ended March 31, 1999,
primarily due to a decline in large project bookings, declines in the
commercial satellite and military markets which Telemetry serves, and a
decline in major new aircraft development programs.

GROSS PROFIT. For the nine-month period ended March 31, 2000, gross profit
increased 5.6%, or $2.6 million from $45.7 million for the nine-month period
ended March 31, 1999, to $48.3 million. As expected, for the nine-month period
ended March 31, 2000, gross profit as a percentage of sales decreased to 53.4%
from 58.3% for the nine-month period ended March 31, 1999, primarily due to a
higher percentage of sales of the Company's Communications Group products, which
generally yield lower margins than the Company's other products, and lower
margins experienced by the Computer Group and the Aerospace Group. Gross margins
as a percentage of sales are expected to continue to decrease slightly, as the
Company's lower margin production and systems business continues to be a larger
portion of total sales mix.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE. For the nine-month period ended
March 31, 2000, selling, general and administrative (SG&A) expense increased
5.2%, or $928,000, from $17.8 million for the nine-month period ended March 31,
1999, to $18.7 million. This increase was primarily due to an increase in costs
commensurate with the growth of the Communications Group and to the formation of
SBS Technologies Europe GmbH, which markets Computer Group products outside of
the United States. For the nine-month period ended March 31, 2000, SG&A expense
as a percentage of sales decreased to 20.7% from 22.7% in the nine-month period
ended March 31, 1999, as the increase in sales volume more than offset the
increase in expense.

RESEARCH AND DEVELOPMENT EXPENSE. For the nine-month period ended March 31,
2000, research and development expense (R&D) increased 5.6%, or $599,000, from
$10.6 million for the nine-month period ended March 31, 1999, to $11.2 million.
This increase resulted primarily from increased investment in product
development within the Communications Group, commensurate with the growth of the
segment, partially offset by a reduction in costs within the Aerospace Group.
For the nine-month period ended March 31, 2000, R&D expense as a percentage of
sales decreased to 12.4% from 13.6% in the nine-month period ended March 31,
1999, as the increase in sales volume more than offset the increase in expense.

ACQUIRED IN-PROCESS RESEARCH AND DEVELOPMENT CHARGE. For the nine-month period
ended March 31, 1999, in connection with the acquisition of the majority
interest in OR completed on July 1, 1998, the Company recorded a $0.5 million
earnings charge based on an assessment by the Company, in conjunction with an
independent valuation firm, of purchased technology of OR. The assessment
determined that $0.5 million of OR's purchase price represented technology that
did not meet the accounting

                                     Page 10
<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 2000
                                   (Continued)

definitions of completed technology, and thus should be charged to earnings
under generally accepted accounting principles. This assessment analyzed certain
VME, CompactPCI, and PC Compact products that were under development at the time
of acquisition. These programs were in various stages of completion ranging from
initial development to 90% of completion, with estimated completion dates
ranging from September 1998 through April 1999. The fair value of these
development programs was determined in accordance with views expressed by the
staff of the Securities and Exchange Commission.

AMORTIZATION OF INTANGIBLE ASSETS. For the nine-month period ended March 31,
2000, amortization of intangible assets increased 16.1%, or $458,000, from $2.8
million for the nine-month period ended March 31, 1999, to $3.3 million. This
increase was the result of the amortization of goodwill associated with the
acquisition of SBS Technologies, Inc., Communications Products (formerly SBS
Technologies, Inc., Embedded PPC Products) and the acquisition of the minority
interest in OR and ORTEC in December of 1998, partially offset by the favorable
impact of changes in exchange rates.

INTEREST INCOME, NET OF INTEREST EXPENSE. For the nine-month period ended March
31, 2000, interest income, net of interest expense increased 198.2%, or
$181,000, from $91,000 for the nine-month period ended March 31, 1999, to
$272,000. This increase was primarily due to an increase in interest income
associated with amendments of prior years' tax returns for research and
experimental tax credits, as well as the elimination of interest expense
associated with the $10.4 million payment made in February 1999 for the
remaining interest in OR and ORTEC.

FOREIGN EXCHANGE GAINS (LOSSES). For the nine-month period ended March 31, 2000,
the $92,000 foreign exchange loss was primarily attributable to the change in
exchange rates relating to interest payable on debt from the Company's foreign
subsidiary. For the nine-month period ended March 31, 1999, the $612,000 foreign
exchange gain was primarily attributable to the change in exchange rates between
December 9, 1998 and February 28, 1999, relating to the note payable entered
into on December 9, 1998 for DM 17.2 million paid on February 28, 1999 for the
remaining interest in OR and ORTEC.

INCOME TAXES. For the nine-month period ended March 31, 2000 and the nine-month
period ended March 31, 1999, income taxes represented an effective income tax
rate of 34.1% and 37.0%, respectively. The decrease in the effective income tax
rate was primarily due to U.S. tax planning strategies implemented by the
Company, including minimization of the Company's tax liability related to debt
between the Company and its foreign subsidiaries and increased use of the
Company's foreign sales corporation.

EARNINGS PER SHARE. For the nine-month period ended March 31, 2000, net income
per common share was $1.64 compared to $1.50 for the nine-month period ended
March 31, 1999. For the nine-month period ended March 31, 2000, net income per
common share assuming dilution was $1.49 compared to $1.42 for the nine-month
period ended March 31, 1999.

REVIEW OF BUSINESS SEGMENTS

The Company is managed and operates through three operating segments: the
Communications Group, the Computer Group and the Aerospace Group. The following
is a discussion of sales to external customers and segment profit for each
reportable segment. The Company does not allocate to these segments costs
associated with its corporate headquarters, substantially all of the
amortization expense associated with acquisitions, substantially all interest
income earned on cash balances, interest expense associated with Company
borrowing facilities, and acquired in-process research and development charges.
This measure of segment profit described above is referred to herein as "Segment
Profit."

COMMUNICATIONS GROUP

For the nine-month period ended March 31, 2000, Communications Group sales to
external customers increased 118.9%, or $15.3 million, from $12.9 million for
the nine-month period ended March 31, 1999 to $28.2 million. Of this 118.9%
increase, sales contributed from the acquisition of SciTech, Inc. accounted for
12.7% of the increase. The balance of the increase, 106.2%, was primarily
attributable to an increase in sales of the Group's industrial systems and
enclosures products and PowerPC based processor products, partially offset by
pricing pressure.


                                     Page 11
<PAGE>
                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 2000
                                   (Continued)

For the nine-month period ended March 31, 2000, Communications Group segment
profit increased 194.0%, or $4.8 million, from $2.5 million for the nine-month
period ended March 31, 1999, to $7.3 million, primarily due to the increase in
sales among the Group's product lines, partially offset by an increase in SG&A
and R&D expenses commensurate with the growth of the segment. For the same
reasons, segment profit as a percentage of sales increased from 19.3% for the
nine-month period ended March 31, 1999 to 25.9% for the same period in 2000.

COMPUTER GROUP

For the nine-month period ended March 31, 2000, Computer Group sales to external
customers increased 2.2%, or $921,000, from $41.0 million for the nine-month
period ended March 31, 1999 to $41.9 million, primarily the result of an
increase in sales of the Group's general purpose I/O products and computer
processor products. This increase was partially offset by pricing pressure, the
negative impact of changes in exchange rates on sales, and a decrease in sales
of the Group's computer connectivity and expansion unit products, primarily the
result of a decrease in inventory requirements from a large adapter customer and
a decrease in export sales of adapters.

For the nine-month period ended March 31, 2000, Computer Group segment profit
decreased 9.3%, or $880,000, from $9.4 million for the nine-month period ended
March 31, 1999 to $8.5 million. This decrease was primarily due to a shift in
sales to lower margin products and an increase in SG&A expense primarily
associated with the formation of SBS Technologies Europe GmbH, which markets
Computer Group products outside of the United States. For the same reasons,
segment profit as a percentage of sales decreased from 23.0% for the nine-month
period ended March 31, 1999 to 20.4% for the same period in 2000.

AEROSPACE GROUP

For the nine-month period ended March 31, 2000, Aerospace Group sales to
external customers decreased 17.3%, or $4.2 million, from $24.4 million for the
nine-month period ended March 31, 1999 to $20.2 million. This decrease was
primarily the result of a decrease in sales of the Group's telemetry and
avionics interface products, which have been impacted by declines in large
project bookings and declines in the commercial satellite and military markets
which Telemetry serves, as well as a decline in major new aircraft development
programs.

For the nine-month period ended March 31, 2000, Aerospace Group segment profit
decreased 35.2%, or $3.0 million, from $8.5 million for the nine-month period
ended March 31, 1999 to $5.5 million. This decrease was primarily due to lower
sales of the Group's telemetry and avionics interface product lines and a shift
in sales mix to lower margin products, partially offset by reductions in R&D and
SG&A expense. For the same reasons, segment profit as a percentage of sales
decreased from 34.7% for the nine-month period ended March 31, 1999 to 27.2% for
the same period in 2000.

THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THREE MONTHS ENDED MARCH 31, 1999

SALES. For the three-month period ended March 31, 2000, sales increased
11.4%, or $3.1 million, from $26.8 million for the three-month period ended
March 31, 1999, to $29.9 million. Of this 11.4% increase, sales contributed
by the acquisition of SciTech, Inc. comprised 2.8%, and 8.6% was attributable
to the Company's other product lines. Unit shipments increased among all
product lines within the Communications Group segment, but this increase in
volume was partially offset by pricing pressure. Unit shipments declined
within the Computer Group, primarily the result of a decrease in sales of the
Group's computer connectivity and expansion unit products and computer
processor products, partially offset by an increase in sales of the Group's
general purpose I/O products. The Computer Group also experienced pricing
pressure during the quarter. Unit shipments declined within the Aerospace
Group compared to the three-month period ended March 31, 1999, primarily due
to a decline in large project bookings, declines in the commercial satellite
and military markets which Telemetry serves, and a decline in major new
aircraft development programs.

                                     Page 12
<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 2000
                                   (Continued)

GROSS PROFIT. For the three-month period ended March 31, 2000, gross profit
increased 1.3%, or $196,000 from $15.4 million for the three-month period ended
March 31, 1999, to $15.6 million. As expected, for the three-month period ended
March 31, 2000, gross profit as a percentage of sales decreased to 52.1% from
57.3% for the three-month period ended March 31, 1999, primarily due to a higher
percentage of sales of the Communications Group products, which generally yield
lower margins than the Company's other products, and lower margins experienced
by the Computer Group and the Aerospace Group. Gross margins as a percentage of
sales are expected to continue to decrease slightly, as the Company's lower
margin production and systems business continues to be a larger portion of total
sales mix.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSE. For the three-month period ended
March 31, 2000, selling, general and administrative (SG&A) expense increased
8.0%, or $479,000, from $6.0 million for the three-month period ended March 31,
1999, to $6.5 million. This increase was primarily due to an increase in costs
commensurate with the growth of the Communications Group and to the formation of
SBS Technologies Europe GmbH in July 1999, which markets Computer Group products
outside of the United States. For the three-month period ended March 31, 2000,
SG&A expense as a percentage of sales decreased to 21.6% from 22.3% in the
three-month period ended March 31, 1999, as the increase in sales volume more
than offset the increase in expense.

RESEARCH AND DEVELOPMENT EXPENSE. For the three-month period ended March 31,
2000, research and development expense (R&D) decreased 2.2%, or $83,000, from
$3.8 million for the three-month period ended March 31, 1999, to $3.7 million.
This decrease is primarily due to a reduction in costs within the Aerospace
Group, partially offset by increased investment in product development within
the Communications Group, commensurate with the growth of the segment. For the
same reasons for the three-month period ended March 31, 2000, R&D expense as a
percentage of sales decreased to 12.4% from 14.1% in the three-month period
ended March 31, 1999.

AMORTIZATION OF INTANGIBLE ASSETS. For the three-month period ended March 31,
2000, amortization of intangible assets decreased $61,000, due to the favorable
impact of changes in exchange rates.

INTEREST INCOME, NET OF INTEREST EXPENSE. For the three-month period ended March
31, 2000, interest income, net of interest expense increased $160,000, from
$(62,000) for the three-month period ended March 31, 1999, to $98,000. This
increase was primarily due to the elimination of interest expense associated
with the $10.4 million payment made in February 1999 for the remaining interest
in OR and ORTEC, and the elimination of interest expense associated with
borrowings drawn under the Company's line of credit during the quarter ended
March 31, 1999.

FOREIGN EXCHANGE GAINS (LOSSES). For the three-month period ended March 31,
2000, the $62,000 foreign exchange loss was primarily attributable to the change
in exchange rates in the quarter ended March 31, 2000 relating to interest
payable on debt from the Company's foreign subsidiary. For the three-month
period ended March 31, 1999, the $554,000 foreign exchange gain was primarily
attributable to the change in exchange rates between January 1, 1999 and
February 29, 1999, relating to the note payable entered into on December 9, 1998
for DM 17.2 million paid on February 28, 1999 for the remaining interest in OR
and ORTEC.

INCOME TAXES. For the three-month period ended March 31, 2000 and the
three-month period ended March 31, 1999, income taxes represented an effective
income tax rate of 32.7% and 35.0%, respectively. The decrease in the effective
income tax rate was primarily due to U.S. tax planning strategies implemented by
the Company, including minimization of the Company's tax liability related to
debt between the Company and its foreign subsidiaries and increased use of the
Company's foreign sales corporation.

EARNINGS PER SHARE. For the three-month period ended March 31, 2000, net income
per common share was $0.46 compared to $0.55 for the three-month period ended
March 31, 1999. For the three-month period ended March 31, 2000, net income per
common share assuming dilution was $0.41 compared to $0.52 for the three-month
period ended March 31, 1999.

                                     Page 13
<PAGE>
                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 2000
                                   (Continued)

REVIEW OF BUSINESS SEGMENTS

The Company is managed and operates through three operating segments: the
Communications Group, the Computer Group and the Aerospace Group. The following
is a discussion of sales to external customers and segment profit for each
reportable segment. The Company does not allocate to these segments costs
associated with its corporate headquarters, substantially all of the
amortization expense associated with acquisitions, substantially all interest
income earned on cash balances, interest expense associated with Company
borrowing facilities, and acquired in-process research and development charges.
This measure of segment profit described above is referred to herein as "Segment
Profit."

COMMUNICATIONS GROUP

For the three-month period ended March 31, 2000, Communications Group sales to
external customers increased 123.8%, or $6.3 million, from $5.1 million for the
three-month period ended March 31, 1999 to $11.4 million. Of this 123.8%
increase, sales contributed by the acquisition of SciTech, Inc. accounted for
14.7% of the increase. The balance of the increase, 109.1%, was attributable to
organic growth primarily resulting from an increase in sales of the Group's
industrial systems and enclosures products and PowerPC based processor products,
partially offset by pricing pressure.

For the three-month period ended March 31, 2000, Communications Group segment
profit increased 203.6%, or $2.3 million, from $1.1 million for the three-month
period ended March 31, 1999, to $3.4 million, primarily due to the increase in
sales among the Group's product lines, partially offset by an increase in R&D
and SG&A expenses commensurate with the growth of the segment. For the same
reasons, segment profit as a percentage of sales increased from 21.8% for the
three-month period ended March 31, 1999 to 29.5% for the same period in 2000.

COMPUTER GROUP

For the three-month period ended March 31, 2000, Computer Group sales to
external customers decreased 5.4%, or $758,000, from $13.9 million for the
three-month period ended March 31, 1999 to $13.2 million, primarily the result
of a decrease in sales of the Group's computer connectivity and expansion unit
products, which were affected by a decrease in inventory requirements from a
large adapter customer and reduction in export sales of adapters, a decrease in
sales of the Group's computer processor products, negative impacts of changes in
exchange rates on sales, and pricing pressure, partially offset by an increase
in sales of the Group's general purpose I/O products.

For the three-month period ended March 31, 2000, Computer Group segment profit
decreased 35.9%, or $1.1 million, from $3.2 million for the three-month period
ended March 31, 1999 to $2.0 million. This decrease was primarily due to the
decrease in sales and a shift in sales mix to lower margin products, combined
with an increase in SG&A expense associated with SBS Technologies Europe GmbH,
which markets Computer Group products outside of the United States. For the same
reasons, segment profit as a percentage of sales decreased from 22.9% for the
three-month period ended March 31, 1999 to 15.5% for the same period in 2000.

AEROSPACE GROUP

For the three-month period ended March 31, 2000, Aerospace Group sales to
external customers decreased 31.5%, or $2.5 million, from $7.8 million for the
three-month period ended March 31, 1999 to $5.4 million. This decrease was
primarily the result of a decrease in sales of the Group's telemetry and
avionics interface products, which have been impacted by declines in the
commercial satellite and military markets which Telemetry serves, as well as a
decline in major new aircraft development programs.

For the three-month period ended March 31, 2000, Aerospace Group segment profit
decreased 52.5%, or $1.2 million, from $2.4 million for the three-month period
ended March 31, 1999 to $1.1 million. This decrease is primarily due to lower
sales of the Group's telemetry and avionics interface product lines and a shift
in sales mix to lower margin products, partially offset by a reductions in R&D
and SG&A expense. For the same reasons, segment profit as a percentage of sales
decreased from 30.3% for the three-month period ended March 31, 1999 to 20.9%
for the same period in 2000.

                                     Page 14
<PAGE>
                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 2000
                                   (Continued)


LIQUIDITY AND CAPITAL RESOURCES

The Company uses a combination of the sale of equity securities, internally
generated funds and bank borrowings to finance its acquisitions, working capital
requirements, capital expenditures and operations.

Cash totaled $7.9 million at March 31, 2000, an increase of $4.4 million from
June 30, 1999. This increase was the result of $1.5 million of cash flow from
operations and $7.3 million from the exercise of stock options and warrants,
partially offset by $1.5 million of expenditures for capital equipment, $4.0
million of payments on the Company's notes payable, $1.4 million of payments
to the former shareholder of OR, and $0.4 million of dividends paid to the
former shareholders of SciTech, Inc., in conjunction with the pooling of
interests agreement dated December 20, 1999. The Company's growth during the
nine-month period ended March 31, 2000 caused the Company to increase
accounts receivable and inventory. Liabilities were in line with the current
level of business. The exercise of stock options reduced the Company's tax
liability.

On December 1, 1998, the Company entered into a $15.0 million Credit
Agreement ("Agreement") with Bank of America, N.A. ("Lender"), formerly
NationsBank, N.A. The Agreement expired on November 30, 1999, but was
modified to extend the expiration date to January 31, 2000. Effective January
31, 2000, the Agreement was renewed and modified, allowing for $25.0 million
of borrowings with an expiration date of November 30, 2001. Effective March
31, 2000, the Agreement was modified, allowing for $30.0 million of
borrowings with an expiration date of March 31, 2001. The Agreement also
amends the Tangible Net Worth covenant whereby stockholders' equity less the
net book value of intangible assets and unamortized debt discount and
expenses cannot be less than $30.0 million plus 75% of the cumulative
consolidated net income for each calendar quarter commencing on October 1,
1998, through the quarter of measurement, plus 75% of the amount of any
proceeds received from the issuance of any additional shares of stock or
other equity instruments, reduced by $8,000,000. Additionally, in
consideration of the increase in the available commitment and other
modifications, the Agreement was modified to include a pledge of the
Company's accounts receivable and inventory as collateral. As of March 31,
2000, there were no borrowings drawn on the Agreement, and the Company was in
compliance with all of the covenants of the agreement. On April 12, 2000, the
Company borrowed $20.0 million to finance the acquisition of SDL
Communications, Inc. (See "Subsequent Event" below). Management believes that
its financial resources, including its internally generated funds and debt
capacity, will be sufficient to finance the Company's current operations and
capital expenditures, excluding acquisitions, for the next twelve months. At
March 31, 2000, there were no material outstanding commitments for capital
expenditures.

For the nine-month period ended March 31, 2000, there was no significant impact
from inflation. However, changing prices impacted the Company's sales and income
from operations (see "Results of Operations" above).

SUBSEQUENT EVENT

On April 12, 2000, the Company completed the acquisition of SDL Communications,
Inc. ("SDL") for $25.0 million in cash, subject to adjustment upon finalizing
the closing balance sheet. The acquisition was funded with existing cash and a
$20.0 million borrowing under the Company's Credit Agreement with Bank of
America, N.A. Acquisition costs are estimated to be $2.0 million. SDL is a
privately held company located in Easton, Massachusetts that specializes in the
design, manufacture and sale of WAN I/O for the telecommunications and data
communications markets. SDL designs, manufactures, and markets T1/EI, T3/E3,
HSSI and OC3 products based on the PCI, CompactPCI, and PMC form factors, and
supporting protocols such as Frame Relay, HDLC, PPP, X.25 and ATM. In addition,
SDL's products support the operating systems most commonly used in
communications, including Windows NT, Solaris, and VxWorks. The acquisition will
be accounted for under the purchase method, whereby the purchase price will be
allocated to the underlying assets and liabilities based upon their estimated
fair values. In connection with the acquisition, the Company expects to record
an approximate $4.0 million acquired in-process research and development charge.
The remaining goodwill will be amortized over an approximate eight year period.
For the year ended December 31, 1999, SDL had sales of $12.3 million and a loss
before income taxes of $3.0 million (unaudited). The loss before income taxes
includes a stock-based compensation charge as required by APB 25 of $4.5
million. Excluding the stock-based compensation charge, income before income
taxes for the period ended December 31, 1999 would have been $1.5 million.

                                     Page 15


<PAGE>
                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
              MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                 MARCH 31, 2000
                                   (Continued)

EURO CONVERSION

On January 1, 1999 eleven of the fifteen member countries of the European Union
adopted the euro as their common legal currency and established fixed conversion
rates between their existing sovereign currencies and the euro. The legacy
currencies of the participating European Union members will remain legal tender
in the participating countries for the transition period from January 1, 1999 to
January 1, 2002. Beginning January 1, 2002, the participating countries will
issue new euro-denominated bills and coins for use in cash transactions. Legacy
currencies will no longer be legal tender for any transactions beginning July 1,
2002, making conversion to the euro complete. The Company has begun to assess
its need to adapt information technology and other systems to accommodate
euro-denominated transactions, any potential impact on terms and enforceability
of legacy denominated contracts, and potential tax consequences of currency
conversion. This assessment is being conducted to determine whether the euro
conversion will have a material adverse effect on the Company's financial
position, results of operations, or liquidity.

NEW ACCOUNTING STANDARDS

SFAS 133, "Accounting for Derivative Instruments and Hedging Activities", was
issued in June 1998. This statement establishes accounting and reporting
standards for derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities. The provisions of SFAS
133, as amended, are effective for financial statements for fiscal years
beginning after June 15, 2000. The Company has not determined the financial
impact of adopting SFAS 133 to date.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes in the information on this risk that was
provided in the Company's Form 10-K for the year ended June 30, 1999.








                                     Page 16

<PAGE>




PART II - OTHER INFORMATION

Item 1.  Legal Proceedings - None

Item 2.  Changes in Securities - None

Item 3.  Defaults by the Company upon its Senior Securities - None

Item 4.  Submission of Matters to a Vote of Security Holders - None

Item 5.  Other Information - None

Item 6.  Exhibits and Reports on Form 8-K.

         (a)      Exhibits (exhibit reference numbers refer to Item 601 of
                  Regulation S-K)

                  03.i    (1)       Articles of Incorporation, as amended.
                  03.ii   (1)       Bylaws, as amended.
                  10.at   (1)       Second Modification of Credit Agreement,
                                    Guaranty Agreements and Related Loan
                                    Documents, between SBS Technologies, Inc.,
                                    and Bank of America, N.A., formerly
                                    NationsBank, N.A., and the Subsidiaries of
                                    SBS Technologies, Inc. dated March 31, 2000.
                  10.au   (1)       Second Amended and Restated Revolving
                                    Promissory Note, between SBS Technologies,
                                    Inc., and Bank of America, N.A., formerly
                                    NationsBank, N.A., dated March 31, 2000.
                  10.av   (1)       Supplement I to Loan Documents, made and
                                    executed as of April 14, 2000 by SBS
                                    Technologies, Inc., and SDL Communications,
                                    Inc.
                  10.aw   (1)       Security Agreement, entered into as of
                                    March 31, 2000, by SBS Technologies, Inc.
                                    and all Subsidiaries of SBS Technologies,
                                    Inc., in favor of Bank of America, N.A.,
                                    formerly NationsBank, N.A.
                  27.               Financial Data Schedule


          (b)  Reports on Form 8-K - On March 22, 2000, the Company filed Form
               8-K relating to the issuance of a news release with respect to
               its expected financial results. On April 26, 2000, the Company
               filed Form 8-K relating to the acquisition of all of the
               outstanding shares of SDL Communications, Inc. on April 12, 2000.



          (1)  See Exhibit Index on Page 19




                                     Page 17


<PAGE>



                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                      SBS TECHNOLOGIES, INC.



Date:  May 12, 2000                   /s/ Christopher J. Amenson
                                      ----------------------------
                                      Chairman of the Board,
                                      Chief Executive Officer
                                      and President




Date:  May 12, 2000                   /s/ James E. Dixon, Jr.
                                      -------------------------
                                      Vice President,
                                      Finance and Administration;
                                      Chief Financial Officer and
                                      Treasurer


                                     Page 18


<PAGE>

                     SBS TECHNOLOGIES, INC. AND SUBSIDIARIES
                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit Number       Description                                                               Method of Filing
--------------       -------------------------------------------------------------      -----------------------------
<S>                  <C>                                                                <C>
03.i  (1)            Articles of Incorporation, as amended.                                       --

03.ii (2)            Bylaws, as amended.                                                          --

10.at                Second Modification of Credit Agreement, Guaranty Agreements
                     and Related Loan Documents, between SBS Technologies, Inc.,
                     and Bank of America, N.A., formerly NationsBank, N.A.,
                     and the Subsidiaries of SBS Technologies, Inc. dated
                     March 31, 2000.                                                    Filed herewith electronically

10.au                Second Amended and Restated Revolving Promissory Note,
                     between SBS Technologies, Inc. and Bank of America, N.A.,
                     dated March 31, 2000.                                              Filed herewith electronically

10.av                Supplement I to Loan Documents, made and executed as of
                     April 14, 2000, by SBS Technologies, Inc., and SDL
                     Communications, Inc.                                               Filed herewith electronically

10.aw                Security Agreement, entered into as of March 31, 2000, by
                     SBS Technologies, Inc., and all Subsidiaries of SBS SBS
                     Technologies, Inc., in favor of Bank of America, N.A.
                     Formerly NationsBank, N.A.                                         Filed herewith electronically

27.                  Financial Data Schedule                                            Filed herewith electronically

</TABLE>

(1)  Incorporated by reference to Exhibit 3.i, of the Registrant's Quarterly
     Report on Form 10-Q for the quarter ended December 31, 1997.
(2)  Incorporated by reference to Exhibit 3.ii, of the Registrant's Quarterly
     Report on Form 10-Q for the quarter ended December 31, 1995.


                                     Page 19